FLORIDA MISSION CENTER
POOLED FUND PROPOSAL
1) FREQUENTLY ASKED QUESTIONS - answers to the most common questions about the pooling concept
2) POOLED FUND CHART - a flow chart example of how pooling funds works
3) ENDORSEMENTS - statements from various church officials regarding pooling funds in mission centers
4) ASSESSMENT REDUCTION CHART - an example of possible assessment reductions by FMC congregation as a pooled fund increases in earnings
5) WORLD CHURCH RETURN ON INVESTMENT (ROI) - chart showing the history of the World Church Pool "A" (a stock portfolio) investment performance
6) POWER POINT PRESENTATION - pooling information in presentation format
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FLORIDA MISSION CENTER
POOLED FUND PROPOSAL
QUESTIONS AND ANSWERS
1.
What
is pooling?
2.
Where is the pooled fund invested?
3.
How will the pooled fund grow?
4.
Where is the money from the former Districts?
5.
When
would the pooling start?
6.
Why is pooling the accounts a more positive approach to financing the mission
center?
7.
What is the advantage of lower congregational program costs (assessments)?
8.
Do congregations have to participate? What happens if they do not participate?
9.
If a congregation participates in the pool, how does it get its money?
10.
How would congregations get an accounting of its particular fund?
11.
How accessible is the FMC financial officer/bishop in getting congregational
money?
12.
What
happens to the earnings of the pooled fund?
13.
What
happens if the pooled fund has a loss?
14.
How does participation in the pool help the congregation?
15.
Who else is doing something like this? How long have they been doing this?
16.
How
successful have they been?
17.
Who is responsible for keeping track of each congregation’s fund?
18.
Can
individuals participate in this fund?
19.
If I already have a will or trust, how do I change it to include the
congregation, FMC, and/or Deerhaven?
20.
Why is pooling a
win/win situation?
21.
What advantage will pooling funds have for congregations?
22.
How does this meet the World Church goal of “Each One, Reach One”?
23.
What are the next steps?
ANSWERS
· The goal of pooling is to fund the vision and mission of the FMC program with reduced or eliminated costs to the congregations.
· In brief, congregations pool their reserve funds with the Florida Mission Center (FMC) funds so that the earnings can be used to reduce or eliminate congregational program costs (assessments) to the FMC budget.
· A vote of a FMC Conference will determine how the earnings will be distributed.
· A pooled fund is NOT an endowment fund although it essentially is treated like one because generally only the earnings are used.
· The congregation continues to maintain control of its principle account within the pooled fund.
2. Where is the pooled fund invested?
· The money will be invested in the World Church Affiliated Investment Pool (AIP) “A”.
· Pool “A” is managed by the World Church Investment Committee with consultation from professional analysts.
· The eleven year historical earnings average for the Pool “A” Fund is about 9.7%.
3. How will the pooled fund grow?
The pool fund can grow in a number of ways:
· Each congregation can add unallocated funds into its pooled account. Such funds might come by closing savings, CD, or money market accounts.
· Each congregation can transfer excess cash from its checkbook to its pooled account. It is recommended that the congregation maintain about three months of operating expenses in the checking account. Check with the bank for the minimum balance needed and any money over that minimum balance could be sent to the pooled account on a quarterly or regular basis.
· Each congregation is encouraged to put any unused funds from the year end with the exception of three months of operating expenses into the pooled account.
· The mission center will build its operating reserve fund by annually adding any unused operating funds.
· The mission center has a goal of having two years of operating funds in its reserve fund.
· The mission center will promote congregations, Deerhaven and the FMC as funding areas worthy of estate planning consideration to its members.
· The mission center will invite individuals and congregations to contribute to the FMC Endowment fund as a way of increasing the principle of the pooled account.
4. Where is the money from the former Districts?
· The three Eastern Districts, North Florida, East Central Florida, and South Florida, passed resolutions authorizing its district money to go into escrow accounts during the FMC pilot where earnings were to help reduce congregational assessments. When the FMC pilot became an official mission center, the district funds rolled into the mission center funds as directed by the three District resolutions. This has already taken place.
· The Tampa Bay District voted to redistribute its funds back to the congregations. Lakeland Congregation chose to put its portion in escrow with the FMC pilot and other District funds.
· After the FMC became official, the Lakeland Congregation decided by resolution to retain their escrowed funds. These funds have been transferred back to the Lakeland Congregation.
5. When would the pooling start?
· Pooling started during the FMC pilot and has continued since the World Church Leadership Council designated the Florida Region a mission center.
· After a period of dialogue to explain the pooling concept, the members will be asked to endorse the concept and determine the distribution of pooled earnings.
· Then each congregation will be asked to approve the pool concept and determine the amount of funds it will transfer into the pool.
· Once the resolution is adopted and the funds are transferred, the congregation will still be able to deposit and/or withdraw from its account as it chooses according to designated procedures.
6. Why is pooling the accounts a more positive approach to financing the mission center?
Pooling:
·
Provides practical expression of
Zionic, Storehouse, and Stewardship principles of working for the common good
of all people. (For scriptures on these topics, see the attachment.)
· Allows the congregational and FMC funds to work together on behalf of all the people.
· Eliminates arguments over equations and numbers that determine FMC program costs (assessments).
· The current funding method of FMC program costs (assessments) encourages a ‘subtle’ barrier to membership growth since congregations know that smaller membership numbers might reduce their share of the FMC program costs (assessments).
7. What is the advantage of lower congregational program costs (assessments)?
· The reduction or elimination of the congregational share of program costs (assessments) allows the congregation to enhance existing local ministerial programs or start new programs.
· In the current system, each congregation must raise new money through contributions to fund its annual share of the program cost (assessments) of the FMC budget while pooling collectively utilizes pre-existing assets to partially or fully fund the ministry year in and year out.
· Lower congregational program costs give congregations the resources to create new local ministries.
8. Do congregations have to participate? What happens if they do not participate?
· All congregations will be encouraged to take part since all would benefit from the reduction of its share of FMC program costs (assessments).
· We all have been blessed and some congregations have been blessed with substantial financial surplus which could be shared to help in accomplishing the mission entrusted to us all. This is in keeping with Storehouse principles.
· This program has stewardship and storehouse implications of doing things in common since we are all working to proclaim Jesus Christ and promote communities of joy, hope, love and peace.
· A congregation may plan to use its funds to build or remodel.
· It is acknowledged that there may be some congregations that might not currently have additional funds to pool.
· If a congregation chooses not to participate, the Zionic and Stewardship principles apply even more.
· There will be no punitive measures if a congregation does not participate.
· Mission center pooling is like a congregation meeting its operating budget. There are members who have the means to contribute substantially and do; there are those who can but choose to contribute less; and there are those who have less and can’t give if at all. However, all can participate and receive ministry equally. (See your congregation’s contribution analysis report for 2005.)
9. If a congregation participates in the pool, how does it get its money?
· When a congregation wants to deposit or withdraw money from their pooled account, they contact the mission center financial officer/bishop via letter, e-mail or fax to indicate the type of transaction.
· Deposit checks will be sent to the FMC to be forwarded on to the World Church. Withdrawal checks are sent directly to the congregational financial officer from the World Church.
· Transactions are usually done in less than 10 business days.
· The FMC financial officer/bishop maintains and monitors each congregational account balance within the pooled fund.
10. How would congregations get an accounting of its particular fund?
· The FMC financial officer/bishop will annually distribute a history of the congregation’s transactions at the end of the fiscal year of the World Church Investment Pool A.
· The World Church fiscal year is from July 1 to June 30 of the next year.
· Any congregational pastor or financial officer can contact the FMC financial officer/bishop to get an individual accounting.
11. How accessible is the FMC financial officer/bishop in getting congregational money?
· The financial officer/bishop receives messages daily via letter, e-mail, fax, or phone. (except on vacations).
· Normally, it is the financial officer who will make the transfer requests however a pastor could also make the request. Planned expenditures that require a pool withdrawal should be authorized by a vote of the congregational conference.
· The FMC financial officer/bishop will adjust the congregation’s account according to the request.
12. What happens to the earnings of the pooled fund?
· The FMC Conference will vote to determine the distribution of the pooled earnings.
· Depending on FMC Conference action, earnings can be assigned to the next year’s FMC budget. Earnings can also be assigned to congregational accounts proportionately to the amount of money and number of days in the pool from July 1 of one year through June 30 of the next year (World Church Fiscal Year).
13. What happens if the pooled fund has a loss?
· Each account would suffer the loss proportionately.
· The goal is to be prudent with each year’s budget and to increase the operating reserve fund to cover approximately two years of operation.
· If there is not enough operating reserve fund for an entire year’s budget, reserves and shared congregational costs (assessments) would be used for that budget year.
14. How does participation in the pool help the congregation?
· With reduced congregational program cost to the FMC budget, these funds can used for an existing or for a new program/ministry.
· Congregations in other jurisdictions that use the “pooling concept” have been creative in their local ministry. Examples:
1) One congregation has funded an outreach/ethnic minister who bridged the Community of Christ to many other faiths. A prison ministry program was expanded. An outreach relationship with a large apartment complex across the street from the church resulted in picnics and an After-school tutoring program. The seed money for the tutoring program came from a grant from the income of the pooled fund reserves.
2) Another congregation used its “assessment” funds to increase the Christian Education budget to $2,000. A quality education program was developed by a committee which resulted in over 40 in attendance on Wednesday evening classes. Twenty to twenty-five attendees were under eighteen years old. This enthusiasm resulted in over 30 youth registering for camps that year. In addition, over $6,000 was raised to help pay the camp fees. This congregation averaged 60 in attendance and was only about four years old. A pool-funded church planting minister worked in the community. Because there were no assessments, the congregation focused on outreach ministry. In the couple of years or so, they have pooled $25,000 as a start to a building fund.
15. Who else is doing something like this? How long have they been doing this?
· The jurisdictions which are already pooling their monies are South-Central States Mission Center, Greater Los Angeles Mission Center and the Southeast Mission Center.
· The World Church AIP fund is also an example of pooling.
· They all have been doing this for more than six years.
· The FMC pilot used earnings from escrowed accounts to reduce the congregation’s program cost to the FMC budgets.
· The FMC continues to assign a portion of its earnings to the FMC budget to reduce the congregational program costs.
16. How successful have they been?
· Success is measured in different ways in the jurisdictions.
Examples:
1) In Los Angeles, success was measured by the addition of personnel and cars to provide ministry to a huge geographic area. Church planting of house churches was strong in the initial years. In addition, congregations expanded their ministry to youth and children, renovated their facilities and bought hymn books for the new/planted groups.
2) The SE Mission Center Pool earnings fund the mission center budget first before any earnings are distributed to the pooled accounts.
3) In the SE Mission Center, a youth minister, church planter, and ethnic minister were hired; and youth programs and camps were funded. One congregation supports a full-time appointee to grow their church and to create new groups.
4) The key is to have a vision of diversity and of extending ministry to all generations.
5) As the pool grows, congregational program costs (assessments) can be reduced and/or eventually be eliminated. There are two main variables to its success:
o The size of the overall fund.
o The outcome of the market that year.
5) The mission center goal is to have operating reserve funds large enough to sustain a two-year period of low market or loss yields.
17. Who is responsible for keeping track of each congregation’s fund?
· Each congregational financial officer would be responsible for depositing and withdrawing its funds.
· The FMC financial officer/bishop would be responsible for the overall fund coordination, for tracking each congregational account, for distributing the funds to each account, and for preparing annual reports to each congregation after the World Church fiscal year ends.
18. Can individuals participate in this fund?
· Excellent question, the answer is no and yes.
o No, if the individual wants to invest personal money for personal profit.
o Yes, if the person wants to make a contribution of any size to the congregation, FMC, and/or Deerhaven.
· A person can also make contributions through their will and/or trust by designating the congregation, FMC and/or Deerhaven to receive either a certain dollar amount or a percentage of his/her death benefit.
· In the FMC, you contact Jim Deering, World Church Estate Planner, at 1.941.371.3741 or by e-mail at jdeering@CofChrist.org .
· The best advice is to go back to the person who helped you prepare the most recent will or trust and talk to them about making these changes.
· Or you can contact Jim Deering by calling 1-941-371-3741 or by e-mail at jdeering@cofchrist.org.
· You can also get information about estate planning from the World Church Headquarters by calling 1-800-825-2806 ext.2285 or by going to www.CofChrist.org/estate/.
20. Why is pooling a win/win situation?
· Congregations get instant return by keeping more dollars locally for their own outreach ministries.
· Everyone benefits from new programs that otherwise would go unfunded or would be under-funded.
· New energy is generated from the development of new programs.
· Lives are changed and enriched with new opportunities for ministry: 1) “Each One, Reach One”; 2) start or participate in a neighborhood project; and 3) each jurisdiction plants one or more new churches.
· The storehouse principle of pooling supports the mission center vision and goals.
· By working together for the common good, we create a Zionic environment.
21. What advantage will pooling funds have for congregations?
Funds FMC ministry:
· Missionary Outreach consulting
· Congregational consulting
· Exploration Series, spiritual renewal, education and training workshops and retreats.
· Coordinate and provide affordable reunions, retreats, youth camps and training opportunities.
· Listening circles
· Leadership on peace and justice issues
· A youth minister
· Stewardship and preaching ministry
· Administrative support services
22. How does this meet the World Church goal of “Each One, Reach One”?
· Local funds can be directed to community outreach and missions which change people’s lives.
· This allows congregations to develop partnership programs and projects.
· Gives opportunities to meet the needs of the poor.
· Dialogue – information, questions, concerns
· FMC Conference
endorses the pooling concept
determines the % of distribution
encourages congregational participation
· Congregational Conferences
endorses the pooling concept
determines the amount of funds to be put in the pool
· FMC is currently uses the pooling concept and invites the congregations to participate